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Mixing Business with Business... Are You Sending Mixed Messages?

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Education & Training with Sell with Soul

An acupuncturist who also sells Pre-Paid Legal Services memberships... A sales trainer who also distributes organic chocolate bars... A land development consultant who also sells purified water machines... A real estate agent who also sells beauty products...Massage

I'm seeing more and more of this. Friends, acquaintances and service providers promoting their *other* businesses to the same audience to whom they promote their *primary* businesses.

For example, I get emails now and then from a real estate agent who includes a blurb about that month's Avon (or maybe it's Mary Kay) special in her signature line. Sometimes it's reversed; she sends out a promotional email for her beauty product business and includes a blurb about real estate in the signature.

Another one - I was approached a few weeks ago by an industry sales trainer who wanted to know if I'd be interested in selling organic chocolate bars to supplement my own sales training income.

And yes, I was in an acupuncturist's office where his Pre-Paid Legal Services membership brochure was prominently displayed on the check-in/check-out counter.

Hey, I know times are tough. I recently calculated that I have 15 different sources of income, although I will say that the distribution of organic chocolate bars is not going to be one of them. In an uncertain economy, maybe it's prudent to hedge one's bets and create alternative income streams across different industries. (Maybe... I'm not convinced that a better strategy isn't to commit 100% to one, but that's a topic for a different day).

But cross-marketing incompatible products or services will likely backfire. We all have visions of the sort of person we'd feel comfortable entrusting our beauty needs to and that's not likely the same vision of the person we'd like to talk to about refinancing our home. And it's human nature to assume that someone who claims to be worth, let's say, $150/hour to consult on land issues shouldn't need to sell water purification systems on the side.

Instead of broadening the audience for both your primary product or service and your supplemental product or service by cross-marketing to your database, you'll very likely discredit yourself in both.

Okay, okay Ms. Smarty Pantz - I get it, but what should I do instead?

Here are a few ideas...

First, choose compatible industries. Selling organic chocolate bars might fit quite nicely into the business model of an acupuncturist, chiropractor or massage therapist. Ditto water purification systems. Selling Pre-Paid Legal memberships is somewhat compatible with the business model of a real estate agent or tax accountant.  Mortgage brokering along with selling supplemental insurance or financial services might make some sense.

OR

If you're already committed to incompatible industries, perhaps you can bring your spouse on board to be the "front" man or woman for the supplemental business. Therefore, when you promote the second business, you can be doing it ostensibly for your spouse (isn't that sweet?), even though you may be the primary business owner/manager.

OR

If neither of the above options are, well, options for you, don't promote the products or services at the same time. Keep them separate in your marketing. When you send out stuff about real estate, keep it about real estate. When you promote your organic chocolate business, don't breathe a word about your mortgage business. Don't show up at a real estate closing with a Mary Kay pin on your lapel. Don't show up at your Pampered Chef party with a REALTOR pin on your lapel.

Thoughts? Please share!

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The More Fun You Have Selling Real Estate, the More Real Estate You Will Sell! 
(True Story)
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Comments(61)

J. Philip Faranda
Howard Hanna Rand Realty - Yorktown Heights, NY
Associate Broker / Office Manager

I used to originate mortgages because of the clear parallel with residential real estate but decided later that it would be better to do one thing well. 

Jun 25, 2010 03:54 PM
Anna Tolstoy
Coldwell Banker Residential Brokerage - Natick, MA

BTW, love your new profile picture!

Jun 25, 2010 03:56 PM
Kristen Correa, Broker
Kristen Correa Real Estate & Reedy Creek Realty Services - Keller, TX
I love coffee & real estate. I am out of coffee!

Realizing everyone's just doing what they think will help their life, plus many of the two paths do actually correlate, as mentioned with loan originating and real estate, so I try not to let it bug me, but it bugs me. Good post.

Jun 25, 2010 04:23 PM
Samantha Davault
Alexander Chandler Realty - Fort Worth, TX
Fort Worth, TX

Oh, Jennifer!  I thought I was the only one noticing this trend.  I have been getting emails from agents trying to sell me stuff that couldn't be farther from real estate.  It is getting a bit frustrating honestly.  I am all for multiple streams of income, but I agree with you about trying to pick complementary business options, or keep the marketing seperate.  Thanks for sharing.

Jun 25, 2010 04:33 PM
Anna Tolstoy
Coldwell Banker Residential Brokerage - Natick, MA

I can't stop thinking about your post, Jennifer :)

I'm now thinking about these people who "combine businesses", why would they do that, so extensively? In so many different fields? Maybe it does in fact work?.. I would think it doesn't, but what if I'm wrong 

 

I mean, I'm not selling mary kay or any type of cosmetics, but if someone invited me to a party, I might consider sticking in my RE/MAX pin, and getting ready for some questions... But not vice versa 

Jun 25, 2010 04:59 PM
Bob Murphy
Keller Williams Realty Consultants - New Albany, IN

Hi Jennifer.  I agree with you.  Promoting other products while trying to represent yourself as a high dollar professional just doesn't make the high dollar pro look very successful.  It may be better to concentrate on one career at a time.  Although I have seen some who seem to pull it off.

Jun 25, 2010 11:28 PM
Jennifer Allan-Hagedorn
Sell with Soul - Pensacola Beach, FL
Author of Sell with Soul

Anna - thanks for all your thoughts! To clarify - if you go to a party or event and want to wear your REALTOR pin, that's dandy. Just not if you're hosting a Pampered Chef or Candle party or whatever as your business...

Jun 26, 2010 12:26 AM
Claudette Millette
The Buyers' Counsel - Ashland, MA
Buyer, Broker - Metrowest Mass

Jennifer:

Whenever I see a real estate agent who is selling Mary Kay, jewelry or nutritional products it makes me completely doubt their validity as a Realtor. If I feel that way, how do you think the buying/selling public feels?

 

Jun 26, 2010 12:30 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Should your clients EVER have to spend a second worrying about  whether they have your FULL attention on one of the biggest financial deals of their lives?  I don't see how selling a non-compatible product could do anything BUT make them think they've made the wrong choice in agent.

Jun 26, 2010 12:49 AM
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate

I have been asked to participate in every MLM there is. Nope don't have time or the desire to mix the business.

I use a lot of MLM products but have never sold any of them. If it can be done in a way that in non intrusive them fine but I would not want to put that pressure on my clients...EVER.

Jun 26, 2010 02:24 AM
Loreena and Michael Yeo
3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co. - Prosper, TX
Real Estate Agents

While I am symphatetic to those who may need to supplement their income, I find that very hard to accept (for me at least). I role played for 4 years in my life as a Realtor(R) and a structural engineer.

Guess what? No one was getting the best of me.

That's also the reason why I am highly doubtly that cross selling is a good idea.

I was approached by others who told me that I could make another 4-5 figure income monthly withou doing much work selling "stuff"..... I said, Just send me the checks. I'd cash them.

I'm not foolish enough to believe that if you tread yourself too thin, you'd get nothing in the end.

Business is slow? How about making full use of the time to market yourself? Preview properties, visit builders, blog, etc.?

Oh need income to put food on the table? Didn't they say to get out of debt as well as having a very large savings were requirements of the business?

I just imagine that you cannot be the best you can be without fully engaging yourself in the field you plan to soar. If you want to dabble here and there, sure. You also get dabbling income along the way.

Jun 26, 2010 02:34 AM
Dr. Stacey-Ann Baugh
Century 21 New Millennium - Upper Marlboro, MD
A doctor who makes house calls.

I keep coming back to the post because I find the comments to be so judgmental of agents doing other things.  I am not sure the average consumer cares as much as you think if their agent also sells marykay or 5 lynx.  I personally do not care what other agents feel they need to do to make ends meet for their family.  I think the average consumer can relate to the feeling of needing multiple streams of income because they have experienced pay cuts and job losses too.  If you think about it, so many people are doing it so there is clearly some financial benefit.

If the argument is that we should devote ourselves only to real estate then whether the other business is compatible or not should not matter.  The idea that the clients should not have to worry about having your FULL attention is ridiculous (#50).  If my child is sick they may not have my full attention, if I can't pay my mortgage they may not have my full attention, if my husband and I are having problems they may not have my full attention.  Maybe I become a better agent because I have some additional income so I am not as stressed about each sale so I can do a better job.

I feel like I say this over and over but success as an agent is more about work ethic and a willingness to learn the job and listen to my clients than about how many hours I claim to work.  Just because I am only working as an agent does not make me GOOD.

 

 

 

Jun 26, 2010 03:06 AM
Tanya Nouwens
Immeubles Deakin Realty - Montreal West Island, QC
Montreal Real Estate Broker & Stager

Interesting, Jennifer.  I'm a real estate broker (all agents got a promotion in title in Quebec with new legislation passed on May 1) and a home stager...and I also do interior decorating.  I promoted all three when I was just starting out.  But now, I see people's eyes glaze over once I hit the interior decorating part.  I've stopped mentioning it, and I only do it for past clients.  Real estate and home staging go together and complement each other, thankfully. But I am still mindful of "Jack of all trades, Master of none."

Jun 26, 2010 03:07 AM
Anonymous
Doug and April Miller

Enjoyed reading your post and comments. However, my husband Doug and I have great success with both our lobbying and REAL ESTATE businesses. Oklahoma session is Feb-May and Mon-Thurs so it works well with a REAL ESTATE schedule. Most Oklahoma Legislature Members also have another profession.

Jun 26, 2010 03:51 AM
#55
Lonni McDonough
Coldwell Banker Tomlinson Group - Boise, ID
Realtor - Eagle, ID Real Estate; 208-949-3845

JA - totally agree with you.   I'm in my first year of real estate and owned an Interior Design and Staging business prior to getting my license.  I even struggled with cross marketing my staging services because I didn't want to seem like I was less than 110% committed to Real Estate sales.  Since then, I've done a fair amount of cross marketing of my staging skills with the understanding that I'm an agent first and foremost.  Clients seem to appreciate the approach.

Jun 26, 2010 04:27 AM
Sue Gabriel
Cleveland, OH

I now have a client for life (and a good friend) because another Realtor - who was working in her other job at the time - gave her MY business card instead of her own. She must have thrown mine in with hers when I toured one of her listings.

By the way, that 'other job' had absolutely nothing to do with real estate.

 

 

Jun 28, 2010 05:18 AM
Gloria Todor
Premier Property Sales & Rentals - Springfield, PA
& Doug Durren (484) 431-3686 in SE PA

Jennifer, I agree with you about compatibility.   Doug still does some handy man work, as he will never truly give up his love for helping others that way.  what happens is there is never really a need to advertise his other service, because it inevitably comes up in our real estate work since it is a related field of work. 

Gloria

Jun 29, 2010 07:59 AM
Dora & Vincent Kwok
HomeSmart Real Estate - Chandler, AZ
CNE - Chandler, Arizona Real Estate

I agree, keep your dissimliar business separate.

Jun 29, 2010 05:46 PM
Anonymous
Fred Redjaie

I agree that is better to do a job related to yours but I can not say it's as simple as that. I know a friend of mine that could not catch up with the expenses and did not want also to do something unrelated to Real Estate. He started to go through other financial businesses like selling RSP and RRSP to the families so at the same time could do Real Estate. He wanted to go through other Financial areas to find his clients and friends to help him do his real job. I always encouraged him but I also mentioned at the time that he needs a job that would pay not commission but a pay check to survive and be able to pay bills. Finally he Failed. I also gone through it but I always make sure that my bills are paid and my Education is in place and just learn more , look for answers and put them again and again into practice untill finally get the results. Meanwhile I am not going to jeopardize my License. As long as you can survive and get better and updated in Real Estate and can keep focus on what you really mean to do, I think you have to do anything legal to survive and get to the next step. Of couse as soon as you can should get back to what you really want to do. Fred Redjaie with Right At Home Realty, Toronto, Ontario, Canada.

Jul 02, 2010 08:12 AM
#60
Jennifer Allan-Hagedorn
Sell with Soul - Pensacola Beach, FL
Author of Sell with Soul

REALTOR Magazine picked this up - did their regular hatchet job, but it's not as bad as most of their "paraphrasing." http://www.realtor.org/RMODaily.nsf/pages/News2010072004?OpenDocument&WT.cg_n=RMO&WT.cg_s=RSSDaily

Jul 22, 2010 05:50 AM